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1. Company Snapshot

1.a. Company Description

Kosmos Energy Ltd., a deep-water independent oil and gas exploration and production company, focuses along the Atlantic Margins.The company's primary assets include production offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal.It also maintains a proven basin exploration program.


The company was founded in 2003 and is headquartered in Dallas, Texas.

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1.b. Last Insights on KOS

Breaking News: Kosmos Energy Ltd. has seen increased investment from major firms. Geode Capital Management LLC acquired an additional 424,720 shares, growing its stake by 3.9% to 11,263,585 shares. Ballast Asset Management LP also increased its holdings by 38.1% to 1,364,387 shares. There is no recent earnings release to report. Analysts at various firms have not provided new recommendations. Geode Capital Management and Ballast Asset Management's increased investments may indicate confidence in the company's prospects. Several firms hold significant stakes in Kosmos Energy Ltd.

1.c. Company Highlights

2. Kosmos Energy's Q3 2025: Production Growth and Cost Reductions Drive Progress

Kosmos Energy reported a loss per share of -$0.15, wider than the estimated loss of -$0.0775. The company's financial performance was impacted by various factors, including production growth and cost reductions. Revenue growth is expected to be 15.5% next year, according to analyst estimates. The company's valuation metrics indicate a Price-to-Sales Ratio of 0.5, an EV/EBITDA of 2.21, and a Return on Equity (ROE) of -31.24%. The Net Debt to EBITDA ratio stands at 0.46, indicating a relatively manageable debt burden.

Publication Date: Nov -08

📋 Highlights
  • Production Growth: Jubilee's gross oil production rose 13% to 62,500 barrels/day, and GTA production surged 60% to 11,400 BOE/day.
  • Cost Reduction: Operating costs fell 40% QoQ, with CapEx at $67M below guidance and full-year CapEx on track to stay under $350M.
  • Balance Sheet Strengthening: Repaid $150M in 2026 unsecured notes using a $250M Shell term loan, with RBL borrowing base exceeding $1.35B.
  • Hedging Strategy: 2.5M barrels hedged for 2025 and 8.5M for 2026 to mitigate price volatility, supporting cash flow stability.
  • FPSO Lease Refinancing: Sale-and-purchase agreement to reduce FPSO lease costs from $60M to $40–50M annually by 2027, cutting operating expenses.

Operational Highlights

Production at Jubilee increased 13% quarter-on-quarter to around 62,500 barrels of oil per day, driven by the first new well of the 2025/26 drilling campaign. The GTA asset also saw significant production growth, increasing 60% from the previous quarter to around 11,400 barrels of oil equivalent per day. As Andy Inglis mentioned, "We've seen strong production growth from Jubilee, with the first new well of the 2025/26 drilling campaign coming online in July."

Cost Reductions and Balance Sheet Strengthening

Operating costs were down almost 40% quarter-on-quarter, and G&A expenses were lower, highlighting the company's progress in reducing overhead. The company has taken steps to strengthen its balance sheet, including a $250 million term loan from Shell, which was used to repay $150 million of its 2026 unsecured notes. Kosmos Energy has also continued to increase downside protection against near-term commodity price volatility, with 2.5 million barrels of oil production hedged for the remainder of 2025 and 8.5 million barrels of oil hedged for 2026.

Future Outlook

The company expects to generate excess cash in 2026, with optionality in its portfolio for future growth. Kosmos Energy is also exploring secured debt options against the GTA asset and non-core asset divestments to reduce debt and increase financial resilience. The company's production is expected to continue growing, with a target of 80,000 barrels of oil per day in 2026. The valuation metrics, including a Price-to-Book Ratio of 0.78, indicate that the company's stock may be undervalued, presenting a potential investment opportunity.

3. NewsRoom

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Kosmos Energy Ltd. $KOS Shares Acquired by Geode Capital Management LLC

Dec -01

Source: defenseworld.net

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Ballast Asset Management LP Raises Holdings in Kosmos Energy Ltd. $KOS

Dec -01

Source: defenseworld.net

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Here are Tuesday's Top Wall Street Analyst Research Calls: Coreweave, Instacart, Qorvo, Robinhood Markets, Skyworks Solutions, Viasat and More

Nov -11

Source: 247wallst.com

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Kosmos Energy: Growth Visible, But Debt Keeps The Risk High

Nov -04

Source: seekingalpha.com

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Kosmos Energy Ltd. (KOS) Q3 2025 Earnings Call Transcript

Nov -03

Source: seekingalpha.com

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Kosmos Energy Announces Third Quarter 2025 Results

Nov -03

Source: businesswire.com

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Kosmos Energy to Host Third Quarter 2025 Results and Webcast on November 03, 2025

Oct -07

Source: businesswire.com

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Kosmos Energy Provides Update on Financial Progress

Oct -01

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.52%)

6. Segments

Oil

Expected Growth: 7.5%

Kosmos Energy Ltd.'s 7.5% growth in oil production is driven by increased exploration and production activities in Ghana and Mauritania, successful drilling campaigns, and strategic acquisitions. Additionally, improved operational efficiency, cost savings, and favorable crude oil prices contribute to the growth.

Gas

Expected Growth: 8.5%

Kosmos Energy's 8.5% gas growth driven by increasing production from Ghana's Jubilee field, successful exploration in Mauritania and Senegal, and strategic acquisitions. Strong demand from Asian markets, favorable LNG prices, and a solid balance sheet support expansion. Operational efficiencies, cost savings, and a disciplined capital allocation strategy also contribute to the company's growth momentum.

Natural Gas Liquid

Expected Growth: 7.8%

Kosmos Energy's 7.8% growth in Natural Gas Liquids (NGLs) is driven by increased production from its Ghanaian fields, successful exploration and development activities in Mauritania and Senegal, and strong demand from Asian markets. Additionally, the company's strategic partnerships and investments in infrastructure have improved operational efficiency and reduced costs, contributing to the segment's growth.

7. Detailed Products

Crude Oil

Kosmos Energy Ltd. is an independent oil and gas exploration and production company focused on the Atlantic Margin. The company explores, develops, and produces crude oil from its offshore fields.

Natural Gas

Kosmos Energy Ltd. also explores, develops, and produces natural gas from its offshore fields, providing a cleaner-burning fuel for power generation and industrial applications.

Liquified Natural Gas (LNG)

Kosmos Energy Ltd. produces LNG from its natural gas reserves, which is then exported to global markets, providing a cleaner-burning fuel for power generation and industrial applications.

Condensate

Kosmos Energy Ltd. also produces condensate, a light, sweet crude oil, from its offshore fields, which is used as a feedstock for refineries and petrochemical plants.

8. Kosmos Energy Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Kosmos Energy Ltd. is medium due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers for Kosmos Energy Ltd. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Kosmos Energy Ltd. is medium due to the presence of multiple suppliers of oil and gas equipment and services.

Threat Of New Entrants

The threat of new entrants for Kosmos Energy Ltd. is high due to the relatively low barriers to entry in the oil and gas industry.

Intensity Of Rivalry

The intensity of rivalry for Kosmos Energy Ltd. is high due to the presence of several established players in the oil and gas industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.87%
Debt Cost 7.57%
Equity Weight 30.13%
Equity Cost 15.82%
WACC 10.05%
Leverage 231.84%

11. Quality Control: Kosmos Energy Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
California Resources

A-Score: 5.9/10

Value: 8.0

Growth: 3.3

Quality: 8.2

Yield: 5.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Marathon Oil

A-Score: 5.3/10

Value: 5.8

Growth: 6.3

Quality: 6.6

Yield: 1.0

Momentum: 5.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Range Resources

A-Score: 5.2/10

Value: 5.4

Growth: 3.2

Quality: 6.9

Yield: 1.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Crescent Energy

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.2

Yield: 8.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
CNX Resources

A-Score: 4.4/10

Value: 6.8

Growth: 3.1

Quality: 5.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Kosmos Energy

A-Score: 3.4/10

Value: 9.4

Growth: 5.2

Quality: 3.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.15$

Current Price

1.15$

Potential

-0.00%

Expected Cash-Flows